Gower St, Derby
*Target start date is 31st May 2018. Shares may be issued in two tranches to avoid delays.
** Projected return to be paid as a capital gain if circumstances make it possible to do so
*** The Minimum Preferred Return is the return payable to Crowd Investors before the Developer takes any profit themselves.
Property name: Prosperity House
Property type: Flat - Purpose built
Property age: 2000+
Market type: Young professionals
Description: Conveniently situated in Derby City Centre, Prosperity House comprises 147 one and two bedroom apartments across two phases. The second phase has recently been completed and is now ready to be occupied. Read more.
Derby has seen property prices underperforming over the past twenty years when compared with the rest of England and Wales, however, they are improving and it is felt that the significant regeneration schemes along with other recognition of its potential, e.g. its identification as a 'Top 25 European City of the Future' by fDi, will help the local property market to out-perform other areas.
As England's most central city, Derby is served by extensive transport networks connecting it directly to London, Newcastle, Sheffield and Cardiff, to name a few. Derby is also the home of significant employers, in particular leading transport manufacturers including Rolls Royce and Toyota.
This development is conveniently located close to the central business district and it is ideal for commuters. It is also a short walk to the Intu Shopping Centre (formerly Westfields), other excellent leisure facilities and some good local schools (not forgetting the University).
Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.
|Legal & Professional Fees||£2,000|
|Total Fund Required||£234,000|
|Less Debt Finance||£70,000|
|Total fund after Mortgage Finance||£164,000|
|Less Finance & Deposits||-£N/A|
|Remaining Funds Required *||£N/A|
|Ordinary A Shares - Developer Equity||£N/A|
|Ordinary B Shares - Crowd Equity||£N/A|
|Orindary C Shares - Crowd Equity||£N/A|
* Shares may be issued in Tranches to avoid delays
|Gross Sales Price*||£270,000|
|Minus Capital Investment||-£234,000|
|Plus Capital repaid||£10,466|
|Contingency Fund not used||£2,160|
|CL Growth Fees||-£4,289|
|Gross Sales Proceeds||£38,598|
|Net Sales Proceeds||£31,264|
|Share of Growth Paid||56.5%|
|Capital Paid To Investors**||£17,664|
|Capital Return to Investors||11.0%|
*The stated Gross Sales Value is based on local comparisons and the opinion of local agents.
** 50% of any Sales Proceeds above the figure stated above will also be distributed to Shareholders at the end of the 24 month period
|Investment Period||12 Months|
|Avg. Annual Income Return||0.0%|
|Total Income Return*||0.0%|
|Total Capital Return**||11.0%|
|Projected Total Return||11.0%|
|Fixed Total Annualised Return||11.0%|
* Income Return figures assume that the property will be void for a period of six weeks during the investment term, and that the rent charged will be £625 / month per unit. In reality all of these variables might change.
|CrowdLords Risk Rating|
|Macro Location & Market||C|
|Level of Development||A|
|Landlord Track Record||A|
* The Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the LandLord. Investors should make their own assessment of Risk & Reward before investing
We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile. Where risks are higher it is usual to expect a higher return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:
With this Investment, CrowdLords has the role of Managing Investor and is responsible for managing the property as the LandLord.
In these instances, CrowdLords has a small equity stake in order to accommodate the legal structure, and we retain income in the SPV to provide a buffer when it comes to the exit.
We use Complete RPI, a specialist letting service, to manage and let the property on our behalf. When it comes to the end of term, we arrange the sale through a local agent. Post sale, when Investor shares have been redeemed, then we are also responsible for closing down the SPV.